The following is the un-edited press release from the Institute for Supply Management.


TOP PERFORMING INDUSTRIES

The nine industries reporting growth in December — listed in order — are: Real Estate, Rental & Leasing; Finance & Insurance; Utilities; Wholesale Trade; Accommodation & Food Services; Educational Services; Information; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The three industries reporting activity the same as last month are: Agriculture, Forestry, Fishing & Hunting; Retail Trade; and Arts, Entertainment & Recreation. The six industries reporting decreased activity from November to December are: Mining; Other Services; Management of Companies & Support Services; Construction; Transportation & Warehousing; and Public Administration.

WHAT RESPONDENTS ARE SAYING ...

""""Business activity remains strong and is on the upturn."""" (Finance & Insurance)
""""Housing sales slowing, affecting all areas of business."""" (Construction)
""""The economy is starting to slow a little bit."""" (Professional, Scientific & Technical Services)
""""Market remains stable."""" (Information)
""""Business is steady, some seasonal increases."""" (Wholesale Trade)

DECEMBER 2006 NON-MANUFACTURING INDEX SUMMARIES
Business Activity

ISM''s Non-Manufacturing Business Activity Index in December registered 57.1 percent compared to the 58.9 percent registered in November, indicating a slower rate of growth in business activity in December. The implication is that non-manufacturing business activity is continuing to increase for the 45th consecutive month, but at a slower rate. This month, nine industries reported increased business activity, six reported decreased activity, and three indicated unchanged activity compared to November.

The industries reporting growth of business activity in December are: Real Estate, Rental & Leasing; Finance & Insurance; Utilities; Wholesale Trade; Accommodation & Food Services; Educational Services; Information; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The six industries reporting contraction of business activity in December are: Mining; Other Services*; Management of Companies & Support Services; Construction; Transportation & Warehousing; and Public Administration.

New Orders

ISM''s Non-Manufacturing New Orders Index decreased to 54.4 percent in December from the 57.1 percent registered in November. This indicates continued expansion of new orders, but at a slower rate than in November. Comments from members include: """"Slight reduction in activity due to seasonal impact""""; """"Budget constraints of customers""""; and """"Fewer orders.""""

Industries reporting growth of new orders in December are: Accommodation & Food Services; Finance & Insurance; Health Care & Social Assistance; Information; Utilities; Professional, Scientific & Technical Services; Retail Trade; and Wholesale Trade. The industries reporting contraction of new orders in December are: Mining; Other Services*; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Public Administration; Transportation & Warehousing; and Construction.

Employment

Employment activity in the non-manufacturing sector increased at a slightly faster rate in December compared to November. This was the 29th consecutive monthly increase in non-manufacturing employment. ISM''s Non-Manufacturing Employment Index for December is 53.3 percent, an increase of 1.7 percentage points from the 51.6 percent reported in November. Ten industries reported increased employment, six reported a decrease, and two indicated employment is unchanged from November. Comments from respondents include: """"Targeted layoffs""""; """"More job awards""""; and """"Backlog of unfilled positions.""""

The industries reporting growth in employment in December are: Transportation & Warehousing; Real Estate, Rental & Leasing; Information; Utilities; Retail Trade; Educational Services; Accommodation & Food Services; Professional, Scientific & Technical Services; Finance & Insurance; and Public Administration. The six industries reporting a reduction in employment in December are: Mining; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Construction; Health Care & Social Assistance; and Wholesale Trade.

Supplier Deliveries

In December, the delivery performance of suppliers to non-manufacturing organizations was slower than in November. The index registered 51 percent, 1 percentage point higher than in November. A reading above 50 percent indicates slower deliveries. Comments from purchasing and supply executives concerning supplier deliveries in December include: """"Slightly slower due to increased demand"""" and """"Competition with holiday traffic.""""

The industries reporting slowing in supplier deliveries in December are: Utilities; Management of Companies & Support Services; Accommodation & Food Services; Health Care & Social Assistance; Wholesale Trade; Professional, Scientific & Technical Services; and Public Administration. The four industries reporting faster supplier deliveries in December are: Other Services; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; and Educational Services.

Inventories

ISM''s Non-Manufacturing Inventories Index registered 53.5 percent in December, an increase of 2 percentage points compared to November. This is the 14th consecutive month of reported increases in non-manufacturing inventories. Of the total respondents in December, 34 percent indicated they do not have inventories or do not measure them. Comments from members include: """"Increased materials to support new projects"""" and """"Increasing inventory items in support of internal operations.""""